After the Pound suffered alongside the Euro and dropped, it may find it hard to recover even if the common currency moves up.
The Technical Confluences Indicator shows that a dense cluster of potent resistance liens awaits at 1.3294: the Simple Moving Average 200-15m, the one-month low, the one-week low, the Pivot Point one-month Support 2, the SMA 50-1h, and the Bolinger Band one-hour Middle (Stdv. 2.2).
Upon a break higher, the next confluence of robust resistance awaits at 1.3370 which is the convergence of the Fibonacci 38.2% one-week, the Bolinger Band 1-hour Upper, and the Simple Moving Average 200-1h.
On the downside, the pair faces support at 1.3230 which is the congestion of the Fibonacci 23.6% one-day, the Bolinger Band 1h-Lower, the Pivot Point one-week Support 3, and the Bolinger Band 15m-Lower.
Even lower, 1.3170 is the Pivot Point one-week and may provide further support if cable loses the 1.3204 low seen on Tuesday.
This is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight†to each indicator, and this “weight†can influence adjacents price levels. This means that one price level without any indicator or moving average but under the influence of two “strongly weighted†levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Learn more about Technical Confluence
